Posts tagged "False Claims Act"

The anonymous person who led federal investigators to a "flash crash" trader could collect millions of dollars for the information under the federal whistleblower laws. Under the program created as part of the 2010 Dodd-Frank Wall Street reform movement, informants can collect up to 30 percent of the total sanctions if the government is able to collect at least $1 million as a result of these tips. Those who have information on Wisconsin businesses that have engaged in illegal practices may also be eligible for payment under federal whistleblower laws.

Wisconsin residents may be interested in a lawsuit filed under the False Claims Act in 2009 against a chain of nursing homes. The suit states nursing home residents were put through physical therapy regimens that were billed at a higher rate to increase profits. On April 14, the U.S. Department of Justice announced it was intervening in the case.

The Securities and Exchange Commission is enforcing whistleblower protections provided within the Dodd-Frank Wall Street Reform and Consumer Protection Act. It wants employers in Wisconsin and across the country to observe whistleblower protections in its employee contracts and agreements. The commission has requested documents from numerous companies in an effort to identify violations within confidentiality agreements, employment contracts and non-disclosure agreements.

Wisconsin employees may be interested in some information about a new final whistle-blower rule passed by the federal government. This final rule has been years in the making, but continues the policies in effect for a while.

Wisconsin workers may be familiar with the term "whistleblower," which refers to a person who blows the whistle on an employer who is engaged in illegal activity. One type of whistleblower action that an employee may bring against an employer is a qui tam action. Qui tam actions are lawsuits alleging that the government has suffered harm at the hands of an individual or a corporation that filed false claims. The False Claims Act, a federal law, incentivizes individuals to alert the government of such illegal conduct by offering individuals a percentage of any award that results from the lawsuit being successfully prosecuted.

People in Wisconsin may be interested in the outcome of the huge Bank of America and Countrywide whistle-blower case that was settled in August 2014. According to unsealed court documents, three individual whistle-blowers and one small New Jersey mortgage company were awarded $170 million as part of Bank of America's $17 billion settlement in relation to the case. The man who initially blew the case open, a former property appraisal company employee, will receive $56 million, while a former Countrywide executive will receive $58 million. A former Countrywide manager will receive $48 million, and the mortgage company will receive $8.5 million.

The False Claims Act was originally instituted during the Civil War to protect the Union Army from malicious military contractors and has been amended many times since. Any person may file an action under the FCA, and Wisconsin residents dealing with business that involve the government or an agency that works with the government may benefit from being familiar with its basic principles.

Wisconsin workers may be interested in a case involving an unidentified individual who received a $30 million award from the Securities and Exchange Commission under the agency's whistle-blower program. In a statement announcing the award, a spokeswoman for the SEC only said that the person was located outside of the United States. In its statement, the SEC would not name the company or the individual who committed the fraud.

Some investors in Wisconsin might not know that a man who used to be a manager for Moody's Investors Service filed a qui tam complaint against the company after he was fired for blowing the whistle on its practices. The filing was submitted and sealed on Feb. 24, 2012, but after the U.S. government decided not to intervene, the complaint was unsealed on May 30.

A co-worker falsifies expenditures receipts. A large corporation fails to honor the terms of its contract. Whatever the issue, the person who often brings the problem to light is typically known as a whistleblower. Most often, the issues he or she sheds light on are violations under the False Claims Act. It is possible that many Wisconsin residents have been affected by a recent issue that has come to light in this area.

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